Department: County Administration
Department Head/Elected Official: Leah Barton, Deputy County Administrator
Regular or Supplemental RCA: Supplemental RCA
Type of Request: Financial Authorization
Project ID (if applicable): ARPA_FLEX
Vendor/Entity Legal Name (if applicable): N/A
MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request
Request Summary (Agenda Caption):
title
Request by the Office of County Administration for approval to increase the maximum budget for FLEX Fund 1040 by up to $45 million to continue supporting projects aligned with ARPA priority outcomes.
end
Background and Discussion:
Harris County received $457.8 million of American Rescue Plan Act (ARPA) funds in May 2021 and an additional $457.8 million in June 2022. ARPA funds must be obligated by December 31, 2024 and expended by December 31, 2026. The Final Rule provided by the U.S. Treasury Department indicates that State & Local Fiscal Recovery Funds (SLFRF) may be used to pay for government services in an amount equal to the revenue loss experienced by the recipient due to the COVID-19 health emergency.
To facilitate projects for which general funds are a better fit than federal funds, eligible payroll or other eligible expenses currently budgeted in the General Fund are charged to the ARPA grant, as allowed under the ARPA guidance. Moving eligible expenses to the grant frees up General Fund budget which can be transferred to FLEX Fund 1040 for projects aligned to the ARPA priority outcomes and approved via the ARPA governance processes.
A maximum FLEX Fund budget of $70 million was previously approved; this request would increase the maximum by $45 million to a total of $115 million.
Expected Impact:
1. FLEX Funds allow for faster delivery of priority outcomes by reducing compliance burden and allowing use of locally procured vendors
2. Compliance is simplified and the risk of federal clawback for initiatives where eligibility is uncertain is reduced
3. The December 31, 2026 ARPA LFRF deadline does not apply to the FLEX Fund, providing timing flexibility if required beyond the ARPA period
Alternative Options: Limit projects to only those that can clearly meet federal compliance requirements. This could slow down procurement while increasing compliance and administrative burdens, resulting in delays and inefficiencies in the expenditure of ARPA funds.
Alignment with Goal(s):
X Justice and Safety
X Economic Opportunity
X Housing
X Public Health
_ Transportation
_ Flooding
_ Environment
X Governance and Customer Service
Prior Court Action (if any):
|
Date |
Agenda Item # |
Action Taken |
|
3/30/2021 |
367 |
Approval of the process, accountability mechanisms, and priorities for the spending of Harris County Coronavirus Local Fiscal Recovery Funds |
|
6/14/2022 |
4 |
Approval to create FLEX Fund 1040 from budget made available by transferring ARPA-eligible expenses to Fund 2651 |
|
7/18/2023 |
10 |
Approval to increase maximum budget for FLEX Fund 1040 to $70 million. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Fiscal and Personnel Summary |
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Service Name |
FLEX Fund |
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Current Fiscal Year Cost |
Annual Fiscal Cost |
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Labor |
Non-Labor |
Total |
Recurring Expenses |
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Funding Sources |
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Existing Budget |
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$ |
$ |
$ |
$ |
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$ |
$ |
$ |
$ |
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$ |
$ |
$ |
$ |
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Total Current Budget |
$ |
$ |
$ |
$ |
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Additional Budget Request (Requires Fiscal Review Request Form) |
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$ |
$ |
$ |
$ |
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$ |
$ |
$ |
$ |
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$ |
$ |
$ |
$ |
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Total Additional Budget Request |
$ |
$ |
$ |
$ |
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Total Funding Request |
$ |
$ |
$ |
$ |
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Personnel (Fill out section only if requesting new PCNs) |
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Current Position Count for Service |
- |
- |
- |
- |
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Additional Positions Request |
- |
- |
- |
- |
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Total Personnel |
- |
- |
- |
- |
Anticipated Court Date: August 27th, 2024
Anticipated Implementation Date (if different from Court date):
Emergency/Disaster Recovery Note: COVID-19 related item
Contact(s) name, title, department: Romeo Solis, Director, ARPA Portfolio Management Office, Office of County Administration
Attachments (if applicable):